Selling Your Home

But won't I have to pay capital gains tax if I sell? This is one of the most frequent questions I hear. And I hear it from literally all ages, all demographics, everything. Capital gains taxes are some of the most confusing aspects of selling a home and everybody seems to have a slightly different interpretation. What are capital gains taxes? First of all, very simply, it's a tax that the IRS takes on the sale of an asset. So if you've made a profit on the sale of an asset, that is going to be taxed, just like your profits from anything else will be. Long-term is if you've held the asset for more than a year. Short-term is if you've held the asset for less than a year. Obviously, short-term gains are going to come into play if you're flipping a house, but let's just talk about regular home ownership. Selling a house, short-term gains are going to be, even if it's your primary residence that you haven't lived in for a full year, you're going to take what you paid what you can sell it for, but then you're going to subtract those things that you added or changed. And that's going to be your gain. You're only paying tax on the profit. So consult a tax professional, but that's just going to be taxed as part of your regular income, just like you made money on anything else. Long-term gains are paid on any home that you've owned for more than a year. Now, that's going to include your primary residence and a rental property, second home, that sort of thing. And again, I'm going to tell you to consult a tax professional, because I am not a tax professional. Long-term gains become a little trickier because there is an exemption for your primary residence. And I'm not going to get in the weeds here, but that exemption is going to be basically $250,000 if you're a single individual, and $500,000 If you're a married couple filing jointly. So if you have lived in your home as your primary residence for two of the last four years, you are going to be exempt from those caps for the sale of your primary residence. But what if it's not your primary residence, it's a rental property a second home, or something like that there are different tax rates based on your income for those capital gains, again, consult a tax professional, I'm not one, but those rates are gonna differ based on your income. And if you're in a lower income tax bracket, like you make under $43,000 a year, you're not going to pay gain at all. But the long and short story is capital gains are not as scary as they seem. And just make sure you have all the information before you're putting your house on the market. So if you're curious about selling your home, I'd love to talk to you more about the actual sales process. But I am going to tell you to consult a tax professional if the gains and the tax on them are something that concerns you. If you need a good tax professional, I know lots and I'm happy to refer you as well.

When you're getting your home ready to sell, not all dollars are created equal. Obviously, you want to be doing maintenance all along as you're living in a home. So things like maintaining your house and maintaining the exterior of your house. But when we're looking at getting a home on the market, even if it's six months from now, there are some things that you're going to have to put money into that are not going to feel like the high ROI you would like them to be, I'm going to list a few of the maintenance and then I'm going to list a few of the high ROI items that you can do. A balance of those is gonna give you a really good outcome when you go to sell. So here are my top four in each category. Trees and yard. You want to make sure that your trees are not dead, they don't have dead limbs, they're not hanging over the roof, they're not hanging over your driveway or shed or garage. Because as soon as somebody sees a dead tree or a tree that's threatening the house, they're going to add that to their list of projects. And right now, when people are adding to that list of projects, they're not necessarily coming in at a lower price where they would negotiate. Often they're just backing right out the door and getting in their car to get to another house that seems like less work. Plumbing and electrical is the number two and probably in my opinion, the most important. Make sure everything flushes that your outlets work, lights work fans work, and that things look like they're in generally good condition. Your systems. Your HVAC, your water heater, and any sort of systems you have, really need to be in good working order too. Finally the roof. Make sure you don't have any roof leaks, make sure that there's no debris on your roof, and that it doesn't look stained or damaged. And certainly that it's not damaged so that buyers feel really solid when they come in and get excited about the things that you have to offer. Rather than making a list of things that they feel like they need to do. Here are some of the things that add value very definitively. do a little bit more to that landscaping. Make it actually look good. Put mulch down, plant some shrubs, that type of thing. That generally returns about 100% on your investment. That is just a no-brainer. The minor kitchen remodel. So that may be painting your cabinets and maybe just adding new appliances. Maybe it's just putting on a new countertop. It doesn't mean gutting redo the whole kitchen. But that minor kitchen remodel has an ROI of about 98%. Ideally, you do this a few months before you move and you actually can enjoy it as well. A minor bathroom remodel. Same thing. it actually has an average ROI of about 102% anything that gives it just a little extra update a little extra pizzazz, brings it into 2023. You're gonna be in good shape on those. And finally, did you know that you can get a 90% ROI on just replacing your front door? Make sure that you're not only focusing on those ROI things, you're also focusing on the things that are going to negatively impact you if you don't do them. I always will take the time to come to visit your house, and make sure that we've got a solid list that's prioritized other things that you should do when you're getting ready. And that means call your agent, ideally me, before you're even really ready to sell. Six months away, four months away, so we can get all those things done to give you the highest net result possible.

Summer is here, and that normally means a dip in activity for the real estate market, but over the last few years, "normally" is a term that we've all sort of tossed out the window. (I'm sure you know what I mean.) If you're wondering where we are in the Metro Richmond market, here's a little snapshot of what's going on right now, as we dive into summer... As of the end of May, the average home's sales price was $455,408. For a little perspective, that's up from $428,999 in April of this year, and $435,893 in May of 2022. This despite the fact that interest rates are up by over a full percentage point year over year, and of course, lots of predictions that home values would tank. Those predictions didn't amount to much, since the tight market of the last few years has, in fact, just gotten tighter. Why? There are a few reasons- we are in a legitimate housing shortage, as many builders either stopped or slowed building any type of housing units after the bust of '07-'08,  whole new buying pool has dropped into the market in the past few years, and with interest rates rising, there are loads of people sitting in their home with a 3% rate not even thinking about selling and having to buy at more than double that rate. Ugh. I know. Frustrating (to say the least) turn of events! That shortage of inventory means that while last year (2022) seemed like the craziest ever with homes selling on average at 107% of the asking price, we've only dropped down to 104% a year later, with much higher interest rates. The average days on market in the Metro Richmond market is only slightly higher than a year ago. In May '22, homes were on the market for 12 days, and now it's 17. But remember, that's the AVERAGE. The median is exactly the same, at 6 days. My thought, though, is that that is a muddy data point. Many homes lately are going on the market with delayed showings, often going on the market on Wednesday, with showings starting Thursday, and offers being reviewed on Monday or so (or some combination of similar days). In other words, "sold in one day!" is often not happening, as showings run for a set number of days, with a deadline for offers. What does all this mean for you? At the risk of repeating myself, if you're thinking of selling, it's still a great time. With so few homes on the market, your odds of selling very quickly are great. And while you'll definitely maximize what you get for your home if you do some work like staging, painting, and repairs, you'll likely still be able to sell easily even if you don't have the time or money to do those things. (So if you have a house you've been wanting to sell, but don't want to "put the work in" to get it done, NOW is a great time to put it on the market!) If you're looking to buy, this is a market where having a great buyer's agent can really put you ahead of the pack. There are lots of ways to "win" a home in a competitive situation without giving away all of your money and peace of mind, but it definitely takes planning and strategy right now. If you're thinking of buying or selling in this market (or anytime), I'd love to  help you get where you want to be. Let's talk!         *Information here is based on numbers from ShowingTime/Market Stats, and CVRMLS **Numbers are for the Metro Richmond area only

It is a good time to buy? Is it a good time to sell? What's the market doing? These are just a few of the questions I always get asked as a realtor. Didn't answer your questions? Let's talk! DM me on Instagram @cindybennettrealestate or via my website at cindybennett.net.

You want to buy in Richmond, who are you going to call? The obvious answer is me. But if you're buying a home in New Jersey, California, Florida... or anywhere else? How do you even know where to start? Have questions? Reach out. I'd love to help. Find me on Instagram @cindybennettrealestate or at cindybennett.net.

Thinking that you have to wait until Spring to sell your home? You may want to consider selling your home this winter. I explain why in my latest Real Talk with Cindy. Have questions? Reach out to me, I'd love to help. Find me on Instagram @cindybennettrealestate.

Whether or not you're thinking of selling your house this Spring, this Fall, or Winter - or you just want to freshen up - I've got the Top 10 updates you can do while you're stuck in the house & it's cold outside. Want more tips? Reach out, I'd love to talk. Find me on Instagram @Cindybennettrealestate

As you might have heard, we are in a shifting market. Rates are higher, and the economy is a little more questionable. Let's talk about pricing your home in this adjusting market and what you need to keep in mind. If you have more questions, I'd love to answer them. Reach out to me on Instagram at @cindybennettrealestate or via my website at cindybennett.net

Whether you own a home, want to own a home, want to sell a home, or just like to keep up with the news, you've probably been hearing plenty about the real estate market, interest rates, and all the attendant chatter. To misquote a quote, the rumors of a crash have been greatly exaggerated. Here in the Metro Richmond Market, where I also pull my numbers unless stated otherwise, we've definitely seen a shift- anecdotally as we've seen more inspections granted, fewer multiple offer situations, and more negotiation on the part of buyers (cue sound of buyers rejoicing everywhere). By the numbers, we see basically the same thing, but you sort of have to look a bit closer to really see what's going on. In November, the average sale price of homes in the Richmond Metro area dipped to $421,017 from $423,438. Not a huge drop at all. BUT, if you look at the median, you'll see that the median sales prices has actually been totally flat since August at $365,000. In addition, while the median list price to sales price ratio has been flat at 100% since September, the average has dipped to 99.9%. That's no kind of crash. A leveling, or an adjustment for sure. But considering that the high of April 22 was 107.5%, that is a drop indeed. Basically, you're still not "stealing" a house here in the Richmond area, but if you were looking over the last 6 months and got tired of crazy multiple offer situations. those have largely dissipated. While we may see some *great* homes that have multiple offers, most homes now do not. Can you get homes with an inspection and/or negotiate a price reduction or some concessions? You absolutely can! It's happening pretty consistently, in fact. If you're selling, 100% of list price still doesn't sound too bad, does it? Just make sure you have an agent you trust to help walk you through the process, from prep, to pricing. Do you have more questions on the market? I'd love to help!

If you're thinking of buying in this market, you're probably going to need a home inspection, but it might look a little different than a home inspection a year or so ago. Let's talk about it! If you have questions, I'd love to talk to you or help walk you through the process. Send me a message or reach out to me on Instagram at @cindybennettrealestate